A break-up of Cadbury Schweppes was touted in the City today after the company secured greater control over the distribution of drinks such as 7 Up in the United States.

Chocolate maker Cadbury Schweppes today looked set to raise £109m (€156m) following an agreement to sell its South African drinks business Bormor.

Cadbury Schweppes has signalled it still faces sticky trading conditions after confectionery sales suffered in the Europe-wide heatwave.